Twitter has been hit by a 40% year-on-year drop in revenue after more than 500 advertisers paused spending.
According to reports, staff were informed that more than 500 advertisers paused spending after Elon Musk took over in October.
The company over the years has been reported to have the advert as their main source of income. Twitter’s disclosed that its main source of income is advertising with $5.1bn in revenue in 2021. But advertisers pulled out after concerns of a rise in hate speech on the platform and an increase in impersonator accounts after the platform relaunched its blue tick system.
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Additionally, another 35% fell was recorded during the fourth quarter, this was disclosed also to the staff at the meeting.
In December Musk said they were facing a negative cashflow situation of $3bn a year but said they should make a cashflow break even after cutting costs including the retrenchment of more than 5,000 employees.
The goodnews is earlier this month Musk said he will bring back political advertising to Twitter after it took a three-year hiatus.
“We believe that cause-based advertising can facilitate public conversation around important topics. Today, we’re relaxing our ads policy for cause-based ads in the US. We also plan to expand the political advertising we permit in the coming weeks,” Twitter Safety wrote.
Due to change in management of Twitter by Musk, the company have had tough year for since Musk’s $44bn bid to buy the platform was accepted in April. Elon Musk has encountered bantering and criticized for many decisions he has found fit such as retrenching staff and creating a paid-for verification system, amongst others.